How can I get OPM just starting in RE investing

10 Replies

I always here the term of OPM and how people use this to have none of their money in a real estate deal, I just never hear anyone explain it or how it can be done. Are their any good books or mentors that can help me understand how to use this strategy and implement the idea of using other people’s money?

I think the real question you should be asking is "how do I find a good deal?". If you find a good deal you probably won't have any problem finding the money. Just a thought. 

Most investors will want YOU to have some skin in the game too. If you find a deal and let's say you have $20,000 but need another $10,000 to close it, that's a more likely scenario than you not having ANY of your money in the project. As mentioned, if you have a great deal, often it will be relatively easy to get someone to participate financially if there's a good upside for them and risk is shared.

@Michael Cronk I agree with @Jon A. . Don’t worry about finding the money. If you are new to RE investing spend 95% of your time finding deals. It is not easy and takes time to figure out what works in a particular market so be diligent and stick with it. Everything else is secondary including OPM.

Remember the old movie Field of Dreams? Here is a line from it just modified for RE investors: “If you will find it (a deal), They will come!”

I had a great deal last month that we wrote a wholesale contract on for $33k, ARV $135k - $150k, we added $12k as an assignment fee which is healthy and flipped it to a new investor who saw our deal in a facebook group ( we did not know him). He saw the house the next day and bought it. This investor is now on our buyers list and will probably buy 10 more houses like this one...if we can find them for him!

Is a good  book in this subject (invest in  real state with no money down) from from @Brandon Turner. Is always good before u Invest in something read as much book u can and others source of information before action. 

Learn to find a REALLY good deal, and look within your network of trusted friends and family to partner with you. It's hard to want to lend someone your money if they're new and you don't know them... unless the deal is too good to pass up on. If it is, and I'm sure of it- I'll know you weren't able to raise funds from friends and I'm going to ask for a disproportionally high cut to make up for the risk I'm absorbing by throwing cash at someone I don't know and who doesn't have a track record.

Everyone has a friend or family member with a couple spare bucks and an appetite for opportunity. This is how I started, and definitely your best route!